Edirect, which also trades as VIPTel, is a wholesale customer of M2. The acquisition includes contracts of over 50,000 post-paid mobile phone customers.

M2 has also entered a separate agreement to acquire the systems used in servicing the Edirect customer base.

According to a statement released on the ASX, M2 intended to restructure the Edirect business and consolidate the customer base.

"The restructuring of the Edirect operations will incur certain once-off expenses in the 2011 financial year," the statement reads. "Post restructure, it is anticipated that the acquired assets will make an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) contribution in 2013 of $2 million."

It was revealed this week that Edirect was bankrupt and had been hauled before the Australian Competition and Consumer Commission (ACCC) for an alleged breach of the Trade Practices Act. It alleged that Edirect was signing up customers outside of the mobile coverage area it provided.

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